The election of Donald Trump is clearly a "mixed bag" for technology investors and investment bankers, said Ted Smith, president of Union Square Advisors.
"He will be tough on bigger tech players whose products are displacing workers in the heartland," said Smith. "However, he wants to expand America's competitive advantages and technology is certainly one of them."
Trump has also talked about being a trust buster on some of the bigger deals in the markets at a time when there has been a resurgence of activity by traditional large corporate acquirers this year including AT&T (T) , Microsoft (MSFT) , Oracle (ORCL) and Cisco (CSCO) . There has also been widespread divestiture activity by the likes of Hewlett Packard Enterprise (HPE) , Intel (INTC) and Dell as these companies seek to reposition themselves for improved revenue growth.
"The tech M&A market as a means to exit remains extremely robust across the board, for both public and private companies," said Smith. "Absent a further significant economic downturn or geopolitical event that creates a major market dislocation, we expect this level of M&A activity to continue through the rest of 2016 and into 2017."
Smith expects the already-high level of tech-focused activity by private equity firms to continue in 2017. There have been 10 take-private transactions valued at over $1 billion already announced in 2016, more than any other year in the past decade.
"Collectively these tech PE firms have raised tens of billions of dollars of new capital in the last year alone, and they are eager to put that money to work in both new and follow-on investments," said Smith.
As for the initial public offering market, Smith expects it to pick up in 2017 after a moribund 2016.
"Given that the companies that have come to market so far in 2016 have fared reasonably well, the market's receptivity to this next wave of offerings is expected to be generally positive at reasonable valuation levels," said Smith.